A new twist has unfolded in the legal sags surrounding the crypto lending platform Celsius.
Roni Cohen-Pavon, the former Celsius Chief Revenue Officer, has pleaded guilty in a legal case involving various financial offenses he performed while working at Celsius.
Cohen-Pavon recently admitted guilt to several offenses in the United States District Court in Southern New York. The charges include wire fraud, security price manipulation, and conspiracy to commit similar financial crimes.
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Following the hearing, former Celsius CRO will be released on $500,000 bail and await sentencing set to take place on December 11th. Cohen-Pavon has also agreed, as part of the legal proceedings, to repay the victims who incurred losses as a result of the company’s practices.
Cohen-Pavon allegedly worked hand in hand with Celsius’s former CEO, Alex Mashinsky, to artificially inflate the price of the Celsius (CEL) token. Mashinksy is accused of securing $42 million profit, while Cohen-Pavon allegedly gained around $3.6 million from such illegal maneuvers.
While Mashinsky, who has also been charged, remains free after posting a $40 million bond and maintains his innocence, Cohen-Pavon’s plea marks a turning point in the case.
Further complicating the legal landscape for the former Celsius executives, a court allowed authorities to freeze several of Mashinsky’s assets, including some of his bank accounts and a property in Texas. Moreover, Mashinsky’s legal team has initiated a motion to dismiss charges brought by the Federal Trade Commission, arguing that the allegations lack substantive value.
As for the Celsius Network itself, the company entered bankruptcy proceedings in July 2022. A proposed resolution plan is set to be scrutinized by a judge specializing in bankruptcy cases in October.
The acceptance of guilt by Roni Cohen-Pavon adds yet another layer to the unfolding legal drama involving Celsius and its previous senior staff. While Cohen-Pavon is set to make restitution, his former colleague, Alex Mashinsky, is fighting the charges. With the company’s bankruptcy proceedings still pending, the final chapter of this story has yet to be written.